ComEd proposes condo association relief

(Crain's) -- Commonwealth Edison Co. told state lawmakers Thursday that it wants to help condominium associations socked with higher-than-expected electric bills since the utility's rate hike went into effect this year.

At a hearing in Chicago before the Illinois House Electric Utility Oversight Committee, ComEd President J. Barry Mitchell laid out a $4.5-million plan that would bring increases for about 850 condo buildings, mainly in Chicago, in line with the 24% average hike being paid by most Chicago-area households.

The proposal is part of a funding package being negotiated by Senate Democrats and ComEd, its parent Exelon Corp. and Downstate utility Ameren Corp. to aid those hardest-hit by this year's electric rate hikes. The condo aid won't be available if there's no overarching deal with lawmakers, a ComEd spokeswoman says. A deal would be aimed at heading off legislation to roll rates back to last year's levels and freeze them there for at least a year.

Because the common areas of these condo buildings were reclassified from residential to commercial use under the new electric rate scheme, associations are experiencing electric-rate increases of up to 70%, Mr. Mitchell said.

ComEd proposes holding increases for most of these associations to 24% through May 2008, when new rates are next slated to go into effect. For the 25 largest buildings among the 850, ComEd is offering to keep the increase at 24% through the end of this year and then help those customers find alternative power suppliers that can offer them a better deal.

Of the $4.5 million it will cost to aid these customers, ComEd is proposing to collect $1.5 million from ratepayers, subject to approval by state regulators. That would cost the average ComEd residential customer a nickel per month, the company says.

The remaining $3 million would come from ComEd and parent Exelon Corp. as part of the funding package under negotiation.